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Question?.????YRIX Panels Inc. (LPI) is a manufacturer

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Question?.????YRIX Panels Inc. (LPI) is a manufacturer of speciality panels, small tools for the panel industry, as well as sales of solar panel, which they build for other manufacturers.?he company has been in business since 2015, results include 2020 and 2021.?he company through its Board of Directors is developing a plan to acquire more equipment to expand its current facilities. The Board is recommending purchasing $250,000 of new equipment each year and wants to put away cash reserves to purchase the property next to at which has a value of $3,000,000.?The CFO who sits on the Board is concerned the Board may have unrealistic goals considering LPI’s recent financial performance.?he CFO is preparing a report to the Board outlining the concerns.Image transcription textMM Dec 31, 2020 2021 2020 Revenues: Speciality $ 475,00 $ 400,0 Panels 0 00 Solar 275,00 235,0 Panels 000 Tools for Panel 4,00 2,5 Industry 10 – Total $ 754,00 $ 637,5 Revenues 10 00 Expenses: Manageme 66,00S 66,0 nt Wages 0 00 Plant 225,00 225,0 Wages O 00 Plant 235,00 17 Supplies 0 5 68,00 Utiltie… Show more… Show more?ther financial information as of June 30, 2021:?. Cash in bank $73,0002.?ortgage Balance $3,600,0003. Accounts Payable outstanding as of July 2021 is $25,000?. The company purchased $250,000 worth of manufacturing equipment during the current fiscal year.?ash of $100,000 was paid on delivery with balance due on June 1, 2021.?he amount has not been paid as of March 31, 2021.?n additional $250,000 is planned for the coming year.?. In June 2016, it purchased the current property for $6,000,000 (building and land), paying $1,200,000 down and agreeing to pay $300,000 plus 5% interest annually on the unpaid loan balance each July 1, starting on July 1, 2017.?. Panel sales rose 4% in 2021 and expected sales to continue in the future.7. Panel prices increased by 15% in 2021.?he board expects to increase the panel prices by 15% in 2022.8. Solar Panels pricing has not increased for 3 years.?he policy by the Board is to encourage sales of solar panels to assist in overall sales.?he company expects the percentage growth for 2021 to be the same for 2022.9. Maintenance Equipment are expected to grow at the same rate as in 2021.10.?o other unpaid bills existed on June 30, 2021.?1. Operating expenses expected to increase:a.????lant and management wages to increase by 12%b.????lant Supplies, and Miscellaneous to increase by 28%c.????tilities by 10%?The report is to include a Cash Budget for LYRIQ Panels Inc. as of June 30, 2022.?fter completing the cash budget identify three (3) operating items with an explanation for each.?lso are the CFO concerns justified, and if so please explain??AccountingBusinessManagerial AccountingACCT 2550

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